2. Solanco School District 2015-16 Audit January 23, 2017

3. Audit Overview Audit in Accordance with:
US Generally Accepted Auditing Standards
Government (Yellow Book) Auditing Standards
Uniform Guidance
Audit of period 7/1/15 - 6/30/16
Overview of Audit Process
Audit Findings: No significant deficiencies or material weaknesses are reported

4. Governmental Activities (98%) Business-type Activities (2%)
GASBS No. 68, Pensions
PSERS Net Pension Liability (NPL)
43,315,309,000
SSD’s Proportionate Share (%)
0.1638%
SSD’s Proportionate Share ($)
70,915,029
Governmental Activities (98%)
Business-type Activities (2%)
Total
Net Pension Liability
64,496,728
1,418,301
70,915,029
Additional Pension Expense (in addition to contributions paid)
738,966
15,081
754,047

5. PSERS Results of Operations
Fiscal Year – June 30, 2015
Member Contributions
984,634,000
Employer Contributions
2,596,731,000
Total Contributions
3,581,365,000
Total Deductions
(6,262,932,000)
Gap
(2,681,567,000)
Investment Income (3.04%)
1,328,516,000
Decrease in Net Position
(1,353,051,000)

6. PSERS - Future Contributions
PSERS Rate
PSERS Wages (3% annual increase)
PSERS Contribution
Net Contribution
Net Contribution Increase
25.84
21,074,629.00
5,445,684.13
2,722,842.07
30.03
21,706,867.87
6,518,572.42
3,259,286.21
536,444.14
32.04
22,358,073.91
7,163,526.88
3,581,736.44
322,477.23
33.27
23,028,816.12
7,661,687.12
3,830,843.56
249,080.12
34.20
23,719,680.61
8,112,130.77
4,056,065.38
225,221.82
33.51
24,431,271.03
8,186,918.92
4,093,459.46
37,394.08

7. Governmental Activities Historical Analysis
June 30, 2014
June 30, 2015
June 30, 2016
Current Assets
22,842,063
21,992,309
25,672,295
Noncurrent Assets
38,761,504
38,991,241
38,439,441
Total Assets
61,603,567
60,983,550
64,111,736
Current Liabilities
9,483,742
5,949,405
7,378,210
Noncurrent Liabilities
2,583,932
66,911,938
72,640,278
Total Liabilities
12,067,674
72,861,343
80,018,488
Net Position
49,535,893
(11,426,206)
(10,854,579)

8. General Fund Results For Fiscal Year Ended
2014
2015
Actual
2016 – Original Budget
Local Revenues
28,630,344
29,814,012
30,968,739
30,367,487
State Revenues
17,136,128
17,781,054
18,311,720
18,337,539
Federal Revenues
2,625,710
2,202,989
2,062,082
2,187,381
Total Revenues
48,392,182
49,798,055
51,342,541
50,892,407
Instructional Services
28,469,246
29,082,969
31,099,335
32,481,231
Support Services
13,661,206
14,568,451
15,179,515
14,972,976
Operation of Noninstructional Services
894,272
925,695
992,917
1,025,863
Total Expenditures
43,024,724
44,577,115
47,271,767
48,480,070
Fund Transfers & Other Financing Uses
(4,961,602)
(4,854,745)
(4,355,077)
(4,067,600)
Change in Fund Balance
405,856
366,195
(284,303)
(1,655,263)
Change in Reserve for Inventory
(59,138)
12,052
(27,196)
-0-
Ending Fund Balance
5,680,063
6,058,310
5,746,811
4,403,047

9. GASB No. 54 – Fund Balance Reporting and Government Type Definitions
General Fund
Capital Project Fund
Debt Service
Fund
Nonspendable
(Not in spendable form)
257,825
-0-
Restricted
(External)
Committed
(Board)
2,098,778
Assigned
(Board or Delegate)
9,123,116
Unassigned
(Residual GF balance)
3,390,208
Total
5,746,811

10. General Fund Expense Comparison

11. 2015-16 General Fund Expenses

12. Special Education Analysis
Total Expense
6,949,027
7,089,596
8,420,491
Total Enrolled Students
486
553
Total Expense Per Enrolled Student
14,298
14,588
15,227
% Increase in Expense
10.47%
2.01%
18.77%
% Increase in Enrolled Students
6.11%
0.00%
13.79%

13. Capital Project Fund Fund Balance June 30, 2014 June 30, 2015
Revenues:
Investment Income
4,995
7,430
17,021
Other
185
360
310
Expenditures:
Capital Outlay
(1,197,505)
(2,517,386)
(1,600,107)
Transfer In:
1,538,574
1,847,038
4,362,962
Net Change
346,249
(662,558)
2,780,186
Beginning Fund Balance
6,659,239
7,005,488
6,342,930
Ending Fund Balance
9,123,116

14. Capital Project Fund – Building Committee Projects
Fund Balance
June 30, 2016
Ending Fund Balance
9,123,116
Total Smith Middle School Projects
(13,769,419)
Total Swift Middle School Projects
(19,066,013)
Total Clermont Elementary Projects
(5,016,000)
Total High School Projects
(414,800)
Total Other Building Committee Project Listing
(508,420)
Additional Future Capital Project Funding Needs
(29,651,536)

15. Debt Service Requirements

16. Interest Expense History
June 30, 2007
1,081,600
June 30, 2008
787,200
June 30, 2009
688,900
June 30, 2010
596,695
June 30, 2011
446,400
June 30, 2012
353,400
June 30, 2013
267,900
June 30, 2014
136,000
June 30, 2015
37,000
June 30, 2016
-0-

17. Cafeteria Fund Analysis
Operating Revenues
718,317
659,796
660,234
Non-operating Revenues
953,631
984,637
1,037,614
Revenues
1,671,948
1,644,433
1,697,848
Salaries and Benefits
697,306
691,567
681,037
Supplies
762,505
837,643
791,340
Other Expenses
81,430
73,583
111,693
Total Expenses
1,541,241
1,602,793
1,584,070
Transfers In (Out)
-0-
Change in Net Position
130,707
41,640
113,778

18. Internal Service Funds
Changes in Net Position
Additions and Transfers In
4,473,849
4,797,090
4,552,441
Expenses and Transfers Out
4,199,093
4,625,134
4,644,959
Change in Net Position
274,756
171,956
(92,518)
Composition of Net Position
June 30, 2014
June 30, 2015
June 30, 2016
Hospitalization
2,962,951
3,143,296
3,063,313
Unemployment Compensation
172,123
163,734
151,199
Net Position - Total
3,135,074
3,307,030
3,214,512

19. Funding Sources for Health Insurance

20. Other CAFR Components Management’s Discussion and Analysis
Notes to Financial Statements
Note 1- Summary of Significant Accounting Policies
Note 11- Long-term Liabilities
Note 15- Operating Lease
Note 17- Fund Balances
Note 19- Defined Benefit Pension Plan
Note 20- Contingencies and Commitments
Supplemental Schedules for additional analysis
Single Audit (compliance audit of the School District’s federal grants) and related reports
Introductory Section and Statistical Section are Unaudited

21. Schedule of Expenditures of Federal Awards
Expenditures = Grant Revenue
School Lunch/ Breakfast Program
869,137
913,070
Title I
1,905,362
1,748,450
Improving Teacher Quality
249,817
249,204
Special Education (via IU 13)
580,942
580,306
Other
12,229
7,170
Total Federal Grant Expenditures
3,617,487
3,498,200

22. Schedule of Expenditures of Federal Awards
Report on Internal Control over Financial Reporting
No Material Weaknesses or Significant Deficiencies Identified
Report on Compliance with Requirements
No Compliance Findings

23. GASB 75 – Pending Change
GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions were issued June 2015.
The provisions of this statement are effective for the School’s 2018 financial statements and will require changes in the School’s accounting for other postemployment benefits (OPEB). The more significant of these changes are:
An OPEB liability will be recorded for the portion of the present value of projected benefit payments that is attributed to past service.
Projected benefit payments will be discounted to their actuarial present value using a tax-exempt, high quality municipal bond rate which is likely lower than the current rate, resulting in an increase in the OPEB liability.
Most changes in the net OPEB liability will be recorded as expense in the period of change.
The School will be required to report its proportionate share of the premium assistance plan provided through PSERS.
Additional footnote disclosures and required supplementary information will be included in the School’s financial statements as a result of GASB Statement No. 75.

24. This presentation is intended solely for the information and use of the management of Solanco School District and the School Board and is not intended to be and should not be used by anyone other than these specified parties.

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